Energy Bills Nearly 90 Percent Higher in Europe Than a Year Ago

Demonstrators take part in an anti-government protest rally in reaction to the energy crisis and soaring prices in Prague, Czech Republic, on Sept. 28, 2022. David W Cerny/Reuters

Energy bills are nearly 90 percent higher for households across Europe compared to a year ago, according to a new report.

The massive increase in energy prices throughout Europe has been caused by Russia’s war against Ukraine.

The energy crisis caused by the Russia–Ukraine war and the resulting sanctions on Mosco have generated a cost-of living crisis, plunging many developed economies in the eurozone into recession, according to the latest figures from the Household Energy Price Index (HEPI), released on Nov. 7.

The HEPI is a monthly tracker of energy prices for households across 33 European capitals, including the 27 members of the European Union (EU) and other countries, such as Montenegro, Norway, Serbia, Ukraine, the United Kingdom, and Switzerland.

The index report looked at gas and electricity prices from 2009 to October 2022.

Energie-Control Austria, the Hungarian Energy and Public Utility Regulatory Authority (MEKH) and VaasaETT, which compiled the data for the index, showed natural gas bills in October skyrocketing by 111 percent, while electricity had increased to 69 percent.

The average mean of these two figures showed a 90 percent increase in energy bills over the same month last year, reported Euronews.

“Significantly higher [energy prices] compared to one year ago ... can be attributed to a combination of factors, such as increased demand connected to post-pandemic economic recovery and extraordinary weather conditions, the record-high prices for natural gas, and high CO2 emissions allowances,” the HEPI report noted.

The soaring energy costs have caused trouble for governments throughout Europe, as industries shut down due to higher energy bill and the increased threat of rolling blackouts this winter.

Unrest Rises in Europe as Energy Costs Soar

Strikes and protests are spreading throughout Europe, as disgruntlement with EU energy policies and anti-Russian sanctions are growing and citizens are anxious that they will be unable to pay their heating bills during the cold season.

The cost of living was already high before the energy crisis, and it is expected to become worse after the EU begins enforcing embargoes on Russian oil gas next year.

Energy use had already witnessed record high increases last year, as the EU economy attempted a recovery after the pandemic restrictions were relaxed, pushing demand back to pre-2020 levels, according to the report.

The authors of the report blame the crisis over Ukraine for causing “uncertainty over energy security” and “reduced deliveries of Russian gas or [the] complete termination of supply.”

Russia reduced and then terminated Nord Stream 1 gas supplies to Europe in September, after Western allies issued fresh sanctions on Moscow over its invasion of Ukraine.

Both Baltic-based Nord Stream pipelines were later damaged in what appears to be an act of underwater sabotage by an unknown state the following month.

Energy Prices Vary Across the Eurozone

The report also noted variations in energy prices in different parts of Europe, with some nations facing record highs, while others witnessed a drop in costs in October.

Residents of Amsterdam, for example, paid the most for natural gas in the eurozone, two times the European average, followed by Copenhagen, according to the HEPI report.

Budapest, on the other hand, is the cheapest capital city for natural gas in the EU, with residents paying 17 times less than their counterparts in the Netherlands.

However, the situation may not be as rosy as is seems, as the authors of the report believe that regional energy price declines were likely the result of government intervention, such as energy subsidies to businesses and households. But the report added, “Current prices remain incredibly high compared to a year ago.”

The most expensive capitals for electricity in Europe were reported to be Copenhagen, Rome, Amsterdam, and Berlin.

Those with the cheapest utility rates were Kyiv, Ukraine; Belgrade, Serbia; Budapest, Hungary; and Podgorica, Montenegro.

European governments have been pumping money in their efforts of trying to alleviate the financial pain in their nations to stave off economic unrest and potential collapse.

Germany, for example, is reportedly spending more than $200 billion in subsidies and instituting a cap on energy prices to control inflation, and local authorities are even encouraging resident to, stoically, take cold showers in winter.

Meanwhile, Greece is rewarding consumers who cut down on their electricity consumption with cheaper bills along with a similar a cap on payments to utilities.

The government in Athens is partially funding these measures with a windfall tax on energy companies.